European power: Nord Pool Q&A
Eric Thrane is chief executive of Nord Pool, Europe’s largest marketplace for physical and financial power contracts
Q How has Nord Pool been able to achieve such a robust derivatives market?
A Trust in the underlying, which is used as a reference for the derivatives market, is very much the key element. Participants that don’t have the trust in the underlying physical market are never going to trade a derivatives market. The key has been developing high transparency and liquidity for the underlying.
In our market the participants only need to trade the day ahead and use the derivatives market to cash settle
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